Pricing, billing and revenue, explained
Plain-English guides to pricing models, recurring billing, invoices, payment fees and SaaS metrics. Every guide has a worked example and links to its sources.
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Annual billing means one charge for 12 months, even when the price is quoted per month. Here is the discount math, the break-even month and the trade-offs.
10 min read
Annual billing means one charge for 12 months, even when the price is quoted per month. Here is the discount math, the break-even month and the trade-offs.
10 min read
Six subscription model examples described from companies' own annual reports, with how each type bills its customers and what it has to get right.
10 min read
Subscription pricing models decide what a recurring bill is tied to. Three questions and a worked example show how to choose among fixed, per-unit, tiered and hybrid.
10 min read
Stripe usage-based billing turns meter events into an invoice at the end of each period. Here is how meters, usage prices, credits and late events work, with a worked bill.
10 min read
Stripe recurring payments are built from a product, a price, a customer and a subscription that issues an invoice each period. Here is how setup, renewals and fees work.
10 min read
A recurring credit card payment is a scheduled charge to a card the customer agreed to keep on file. Here is how the first payment, later charges, tokens and disputes work.
10 min read
Calculating interest on late payments takes an overdue amount, an annual rate and a count of days late. Here is each step, with four worked examples and invoice wording.
11 min read
The meaning of a pro forma invoice is a preliminary bill sent before goods ship or work is done. See a filled-in example and how it differs from a quote and a final invoice.
10 min read
Payable upon receipt means the invoice is due as soon as the customer receives it. Here is how buyers treat the term, when it fits and how to word it.
10 min read
A Visa chargeback is what Visa's rules call a dispute. Here is how the categories, stages and time limits work from the merchant's side, with a dated example.
10 min read
A Stripe chargeback, which Stripe calls a dispute, debits the payment and a dispute fee from your balance. Here is each stage, deadline and cost from the merchant's side.
10 min read
Square payment processing fees are a percentage plus a fixed amount that depends on how the card is taken. Here are the published US rates and the math on three sale sizes.
10 min read
Six ASC 606 revenue recognition examples, each walked through the five steps and closed with a schedule or journal entries: set-up fees, bundles, rebates, added seats and more.
10 min read
Gross revenue retention shows how much recurring revenue a group of customers still pays after downgrades and cancellations. Formula, worked example and real definitions.
10 min read
LTV in SaaS estimates the margin one customer brings before they cancel. Here is the simple formula, a worked example, a cohort-based alternative and the usual mistakes.
9 min read
About Billing Model
Every guide is researched from primary sources: accounting standards, card-network rules and the payment platforms' own documentation. We link to them so you can check each figure yourself. We don't sell billing software, and nobody pays us to recommend a product.
